Climate Change Mitigation in Developing Countries

Climate Change Mitigation in Developing Countries

A Critical Assessment of the Clean Development Mechanism

Paula Castro

In this groundbreaking book, Paula Castro presents the first systematic categorization of positive and negative incentives generated by the Clean Development Mechanism (CDM) for climate change mitigation in the Global South.

Chapter 5: Does the CDM discourage emission reduction targets in advanced developing countries? An analysis of the 'low-hanging fruit' issue

Paula Castro

Subjects: development studies, development economics, economics and finance, development economics, environmental economics, environment, climate change, environmental economics, environmental politics and policy


The previous two chapters looked into shortcomings of the CDM that affect its ability to encourage emission reductions in the LDCs, and analysed the potential effects of measures that have been proposed to address these shortcomings. The following two chapters are dedicated to the role of the CDM in those countries in which it has been more successful, that is, the more advanced developing countries. The focus will be on aspects of the CDM that influence its ability to generate positive incentives for generating emission reductions ñ beyond offsetting ñ in these countries. One of the concerns that have surrounded the CDM since its establishment and even until today ñ as can be seen from the quotes above ñ is the fear that engaging in CDM projects would imply selling off developing countriesí cheap emission reduction options (the so-called ëlow-hanging fruití) to industrialized countries, with the result that developing countries would have to invest in more expensive measures to meet their own future reduction targets. While the CDM is a cost-containment mechanism and as such is supposed to target the cheap emission reduction options, the ëlow-hanging fruití focus of the CDM has also been criticized from a developed country perspective, on the grounds that the subsidy granted by the mechanism to very large, low-cost projects is disproportionately large compared to the cost of implementing the emission reductions (Wara, 2008).

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information